002328.SZ WACC - Weighted Average Cost of Capital

The WACC of Shanghai Xinpeng Industry Co Ltd (002328.SZ) is 9.3%.

The Cost of Equity of Shanghai Xinpeng Industry Co Ltd (002328.SZ) is 10.50%.

The Cost of Debt of Shanghai Xinpeng Industry Co Ltd (002328.SZ) is 5.00%.

	Range	Selected
Cost of equity	9.30% - 11.70%	10.50%
Tax rate	21.50% - 21.90%	21.70%
Cost of debt	5.00% - 5.00%	5.00%
WACC	8.3% - 10.3%	9.3%

WACC

002328.SZ WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.08	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	11.70%

Tax rate	21.50%	21.90%
Debt/Equity ratio	0.22	0.22
Cost of debt	5.00%	5.00%

After-tax WACC	8.3%	10.3%


Selected WACC	9.3%

002328.SZ's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for 002328.SZ:

cost_of_equity (10.50%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.08) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.